Federal Reserve officials have outlined strategies for managing the central bank's balance sheet, emphasizing efficiency and effectiveness. Lorie Logan, President of the Federal Reserve Bank of Dallas, suggested that the Fed should buy more shorter-dated assets in the medium term to enhance the efficiency of its balance sheet. She also proposed considering central clearing of the Standing Repo Facility (SRF) and noted there is no practical need to revive the US interbank lending market. Logan emphasized the importance of maintaining money market rates near the interest rate on reserves to ensure an efficient and effective central bank balance sheet. She indicated that the Fed's approach aligns with global central banks in aiming to keep money market rates close to interest on reserves. Michael Barr, Vice Chair for Supervision at the Federal Reserve, highlighted the link between monetary policy and financial stability. Speaking at Yale School of Management, Barr stressed that monetary policy is inextricably tied to financial stability, underscoring the need to manage risks to financial stability proactively. The Financial Stability Board is establishing a task force to examine potential risks from shadow banks, focusing on high-risk areas such as the carry trade and the basis trade, to prevent broader financial crises.